San Antonio’s Palmaz Scientific Inc. has hired high-profile Houston lawyer Andy Taylor to combat allegations that the bankrupt medical-device company has defrauded investors.

Taylor appeared on the company’s behalf in U.S. Bankruptcy Court on Monday in an unsuccessful attempt to get court permission to take the depositions of two Palmaz Scientific investors to find out the basis of their fraud allegations.

“What I see is a small handful of disgruntled investors throwing the word fraud around very recklessly and cavalierly in court and in the public domain,” Taylor said after the court hearing. “The company has reached out and hired me to shut that down.”

Taylor previously served under former state Attorney General John Cornyn before Cornyn was elected to the U.S. Senate. For the last six years, Taylor has worked almost exclusively as a legal crusader for Houston-area conservatives, the Houston Chronicle reported earlier this year. He also has worked for former Attorney General Greg Abbott to defend a Republican-backed congressional redistricting map. The redistricting issue is pending before the U.S. Supreme Court.

Palmaz Scientific filed for Chapter 11 bankruptcy protection on March 4 after a failed attempt to raise $32.2 million from existing investors late last year. The company fell into dire straits after entities connected with company founder Dr. Julio Palmaz, which had loaned the company about $12.5 million, refused to extend more credit to keep it afloat.

Some of the Palmaz Scientific investors have been demanding to know where their money has gone. A few filed a lawsuit last fall in Dallas, where the company formerly was based, accusing it of securities fraud and civil theft. That case against the company was put on hold Monday as a result of the bankruptcy filing.

At a court hearing last week, Palmaz Scientific’s representatives indicated that a Palmaz-related entity was considering a bid to acquire the company’s assets.

Jason Brookner, a Dallas lawyer for some investors, questioned the motives of company insiders during last week’s hearing. “What’s happening is that you have alleged fraudsters trying to take assets on the cheap,” Brookner told U.S. Bankruptcy Judge Craig Gargotta.

The fraud allegations have made it difficult for Palmaz Scientific to find prospective buyers for its assets, Taylor said in court Monday. Those allegations were investigated by the IRS and U.S. attorney’s office, which sent the company an “all clear” letter last month, Taylor noted.

“The grandstanding on the part of these few shareholders and their attorneys is designed solely to gain news media attention and has no basis in fact,” Taylor said in a written statement.

Raymond Battaglia, bankruptcy lawyer for Fort Worth lawyer John Foster, who invested $4 million in Palmaz Scientific and is the largest independent shareholder, disagreed.

“Filing bankruptcy has certain implications and ramifications on transparency and disclosure,” Battaglia said after the hearing. “We’d like to know what happened to the $40 million to $50 million of investment money that was put in the company. That’s a legitimate request.”

Taylor disputed a report last week by the Express-News that the state of Texas stands to lose its $3 million investment in Palmaz Scientific, made with taxpayer money through the Texas Emerging Technology Fund in 2010.

“I think Texas will come out just fine,” Taylor said in an interview, suggesting the state could get involved in any new entity that takes over the assets.

“Just transfer their investment to the new entity, if there is one,” he suggested

Battaglia, though, was skeptical. “I don’t see any way that can happen,” he said.